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While this may seem like a large change, The truth is that it signifies a negligible percentage of the overall expense of management.

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Most lodge operators will only focus on the present value of the Qualities, or even the NPV. They don't commonly look at the extensive-term maintenance service fees, that has a massive impact on the long-time period servicing price of the lodge.

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After the five years of occupancy, these service fees are offset by the profits in the lease, plus a income for your loss element, and Several other costs are integrated. As a result, the real estate operator doesn't gain from your occupancy.

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